Finance Minister nominee Lee Hyoung-il rules out corporate tax cuts

Finance Minister nominee Lee Hyoung-il said Sunday the he is not considering a corporate tax cut, citing the restoration of the corporate tax rate that took effect this year.

The nominee made the remarks in response to a ruling party lawmaker's query on whether he would pursue a corporate tax cut, ahead of his confirmation hearing at the National Assembly on Tuesday.

"Discussions on a corporate tax cut are not under consideration," Lee said, adding that the restored corporate tax rate came into force this year.

In 2022, the previous Yoon Suk Yeol government slashed the top corporate tax rate from 25 percent to 24 percent before the following Lee Jae Myung administration restored the rate beginning this year.

"The government restored the corporate tax rate by 1 percentage point in order to normalize the corporate tax burden and establish a virtuous cycle between growth and tax revenue by using the resources generated through tax normalization to support corporate competitiveness," he explained.

In response to another lawmaker's query about his position on calls for further differentiation in corporate and other tax rates in favor of companies operating in regions outside of the capital area, Lee said a more careful approach is needed in consideration of tax equality and the impact on overall fiscal condition.